If you are considering selling a chiropractic practice, coronavirus is probably one of the big concerns that you have as a chiropractor. Perhaps you are even wondering if it is possible to sell during such a time – or if anyone is buying?
Here is some good news!
Yes, it is absolutely possible to be selling a chiropractic practice amidst the coronavirus concerns going on inside our nation. In fact, there are several excellent opportunities that actually make it ATTRACTIVE to be selling a chiropractic practice during these coronavirus times! Here’s why:
- Federal Interest Rates Are Super Low! – To respond to COVID-19 concerns, the Federal interest rates have dropped. Business acquisition loans are as low in the 4% range which is dirt cheap money your buyer can use to purchase your chiropractic practice! This also means that the Buyer’s purchasing power is better and the overall cost of the loan they would use to buy your business is lower.
- Downpayment Requirements Are the Lowest! Even better, due to SBA changes put in place back in 2018, your buyer can now qualify for a bank loan with as little as 5% down towards the purchase price. Prior to this change, it was not uncommon for banks to require 10% or 20% or more downpayment to purchase. This again, lowers the bar for your Buyer and makes it easier for them to get a loan to buy your practice!
- Your Stats May Not Be as Bad as You Think — Even if Coronavirus does negatively impact your practice stats, the first thing to remember is that this is likely temporary. You have a practice track record that goes far beyond COVID-19 and back for many years or decades. So, this crisis can be just a blip on the radar.
- Valuations Look in the Rear View Mirror – Furthermore, keep in mind that the process of a valuation looks in the rearview mirror. So, yes, even if Coronavirus is affecting your practice you are considering purchasing now, the past stats weigh more heavily. And by the time you go through the stages of speaking to the buyer and they get their financing lined up, the impact of Coronavirus could be over and done. In the meantime, they’ve acquired (and you have sold) a business that has weathered all kinds of economic times.
- Everyone is Looking for CONTROL – when chaos hits, everyone is looking for more control. Few practices will give an associate doctor any measure of control, but if they buy a practice, the doctor is now in the owner’s and driver’s seat. Selling a chiropractic practice amidst the coronavirus crisis is your opportunity to control of YOUR future (as Seller) and their opportunity to take control of the future as Buyer.
- Procrastination May Not Produce Better Outcomes – finally, there are certainly some Sellers who are wondering about “waiting out the storm.” Their rationale is that they do not want to put their practice on the market right now because things are in such a state of upheaval. I can appreciate that. However, what these same sellers cannot predict is how long this crisis will last or how long it will take to turn around. A key point here to keep in mind is that there are going to be some practices that will require more than time to recover revenues. The lockdown can be lifted, but for some businesses, that does not mean that patients will automatically flood your schedule and you are back to booming. There will be a percentage of practices that will require effort to get back on track after COVID-19 and that will require effort. Unfortunately, it is likely that these will be the same practices that were in decline prior to Coronavirus and where the owner is already getting tired of putting out the ordinary efforts to maintain business. So, put succinctly – afterward, may be worse, not better.
If you are on the fence about selling a chiropractic practice because of coronavirus concerns, it may benefit you to act SOONER. Worst case scenario, you can delay closing or agree to sell later with the buyer you find now. But if this Coronavirus crisis goes for a while and the damage to your practice is significant, you will start to smell the vultures appear and they will not be looking to pay anything near what your practice is worth at the present time.
Yes, there is a lot of fear and uncertainty right now, but if you are thinking of selling a chiropractic practice amidst the coronavirus crisis, that this may be an ideal time for you to take control of your chiropractic future and make the most of the current market conditions.
If you need to know more about what it takes to successfully sell your chiropractic practice, I’d recommend that you check out our FREE Exit Essentials webinar – where we will discuss the 10 Factors that affect the value of your chiropractic practice sale!